Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Alkane Resources To Announce Capital Raising, Shares In Pre Open

Alkane Resources (ASX: ALK) has gone into a voluntary trading halt ahead of the announcement of a capital raising.

The company has given no indication of where funds raised will be allocated, however the company has been moving towards development at the Tomingley Gold Project in New South Wales.

Alkane has previously said it could start the 12 month construction phase at Tomingley in 2012, leading to the start of production before mid-2013.

A Definitive Feasibility Study indicates production of between 50,000 and 60,000 ounces of gold per annum over the first seven and a half years.

Alkane shares will remain in pre-open until the earlier of an announcement being made or the commencement of trading on Thursday March 1, 2012.